Carlyle Loan Bolsters Its Credit Affiliate

, a giant private-equity house based in the District, said it agreed to loan as much as $100 million to a recognition affiliate that is being rocked by the disturbance in the mortgage markets.

Carlyle Capital, which was taken public earlier this twelvemonth in , drew down $10 million of the $100 million committedness initially to cover mortgage securities that have got declined in value, according to the company.

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"The loan shows that we will do what it takes to protect the involvements of Thomas Thomas Thomas Carlyle investors," said Carlyle Group spokesman Chris Ullman.

Carlyle Capital borrows millions of dollars to make large stakes on AAA-rated mortgage securities. Current turbulence in the high-risk sector of the mortgage marketplace have seeped into the AAA market, leading to a diminution in value for millions of mortgage securities held by Thomas Carlyle Capital. As a result, nervous Banks that had lent Thomas Thomas Thomas Thomas Carlyle money to do those stakes desire more than hard cash in the business relationships until the mortgage securities recoil in value or until Carlyle Capital sells them.

"Despite the fact that nearly 95 percentage of the implicit in assets are AAA mortgage-backed securities with the silent warrant of the U.S. government, the just value of these assets have declined owed to lessened demand for these securities in the market," Carlyle Capital President Toilet C. Stomber said on the company's Web land site yesterday.

The loan bears an involvement charge per unit of 10 percentage and is owed Aug. 20, according to the company.

Investors typically do money on the mortgage securities two ways: when those securities pay dividends that transcend the amount the company borrowed to purchase them in the first place, and secondly, when the mortgage securities are sold at a greater terms than what investors paid for them.

Carlyle Capital's shares trade on , the regulated marketplace of Euronext Amsterdam, under the heart symbol "CCC."